Supply squeeze push US 'choice' beef price to new high

Friday, 10 Jan 2014 | 1:44 PM ETReuters

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The price of choice-grade U.S. beef at wholesale set a new record on Thursday as already tight supplies were further squeezed by harsh weather that reduced the number of cattle that came to market in parts of the country, analysts said.

Select beef cuts on Thursday also marked a fresh record high for a fifth straight day.

Choice beef typically has more "marbling" or fat, making it juicier and more tender than select-graded beef.

The day's wholesale price, or cutout, for choice beef hit $212.05 per hundredweight (cwt), eclipsing the previous May, 2013 record of $211.37, according to the U.S. Department of Agriculture.

"The weights have been coming down and we started placing fewer cattle in feedlots last summer, so eventually we had to tighten supplies up," said Steve Meyer, president of Iowa-based Paragon Economics.

Economists said record-high beef cutout values should come as no surprise given the scare supply situation that could keep retail beef prices at or near record highs through 2014.

Retail beef prices in November climbed to $5.41 per lb, topping the $5.36 October record, according to monthly data compiled by USDA that will be updated on Jan. 16.